Compass Group PLC (GB:CPG)
LSE:CPG
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Compass
(LSE:CPG)
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Rating:64Neutral
Price Target:
29.00 p
â–¼(-98.58% Downside)
Action:ReiteratedDate:12/11/25
Compass's overall stock score is driven by its strong financial performance and positive earnings call insights, which highlight robust profit growth and operational efficiencies. However, technical analysis indicates bearish momentum, and the valuation suggests the stock is relatively expensive. The conservative future growth guidance and potential leverage increase are additional concerns.
Positive Factors
Strong free cash flow
Record free cash flow of $2bn indicates durable cash-generation capacity, enabling reinvestment, M&A funding, dividend support and deleveraging. Reliable FCF cushions cyclical revenue swings and funds strategic initiatives without heavy reliance on external financing.
Negative Factors
Recent revenue decline
An 18% year decline is a material weakening of top-line momentum that can pressure utilization and operating leverage. Persistent declines risk margin erosion and may signal structural client loss, pricing weakness, or exposure to cyclical demand needing strategic remediation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Record free cash flow of $2bn indicates durable cash-generation capacity, enabling reinvestment, M&A funding, dividend support and deleveraging. Reliable FCF cushions cyclical revenue swings and funds strategic initiatives without heavy reliance on external financing.
Read all positive factors
Compass (CPG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
$46.88B
Dividend Yield2.34%
Average Volume (3M)2.74M
Price to Earnings (P/E)0.4
Beta (1Y)0.62
Revenue Growth6.44%
EPS Growth29.42%
CountryUK
Employees580,000
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.67
Shares Outstanding1,700,442,100
10 Day Avg. Volume2,312,330
30 Day Avg. Volume2,736,327
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)0.10
Price to Sales (P/S)0.02
P/FCF Ratio0.25
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit21.80
Enterprise Value/Ebitda16.16
Forecast
1Y Price Target
$41.49Price Target Upside-97.97% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.47
Revenue Forecast (FY)$50.59B
Compass Business Overview & Revenue Model
Company Description
Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camp...
How the Company Makes Money
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Compass Earnings Call Summary
Earnings Call Date:Nov 25, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong profit growth, successful new business and retention rates, and solid regional performance, particularly in the B&I segment. Investments in technology and AI are driving operational efficiencies. However, increased interest costs and potential leverage increases pose challenges. Future growth guidance is seen as conservative.Positive Updates
Strong Profit Growth
Operating profit increased nearly 12% to over $3.3 billion, with free cash flow strong at $2 billion for the first time.
Negative Updates
Increased Interest Costs
Interest was $315 million due to higher debt from acquisitions, with an expected increase to $350 million in 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Profit Growth
Operating profit increased nearly 12% to over $3.3 billion, with free cash flow strong at $2 billion for the first time.
Read all positive updates
Company Guidance
In the fiscal year 2025, Compass delivered robust financial performance with an organic growth rate within its target range of 4% to 5%, complemented by a 12% increase in operating profit to over $3.3 billion and a record $2 billion in free cash flow. The company achieved a net new business growth of 4.5% and maintained a high client retention rate of over 96%. The effective tax rate was 25.5%, with expectations to remain consistent in 2026. Earnings per share increased by just over 11% in constant currency, and capital expenditures were 3.3% of revenue, projected to rise slightly to 3.5% in the following year. The group's organic revenue growth reached nearly 9%, with North America and International regions posting strong revenue and profit growth. Compass anticipates operating profit growth of approximately 10% in 2026, driven by organic revenue growth of around 7%, a 2% contribution from mergers and acquisitions, and ongoing margin improvements.Compass Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 35.29B | 42.00B | 31.03B | 25.51B | 17.91B |
| Gross Profit | 2.34B | 13.93B | 1.95B | 1.48B | 962.00M |
| EBITDA | 3.36B | 2.76B | 2.74B | 2.35B | 1.28B |
| Net Income | 1.43B | 1.40B | 1.31B | 1.24B | 357.00M |
Balance Sheet | |||||
| Total Assets | 19.84B | 24.35B | 21.48B | 18.75B | 14.87B |
| Cash, Cash Equivalents and Short-Term Investments | 427.11M | 623.00M | 1.03B | 1.99B | 1.84B |
| Total Debt | 5.19B | 5.91B | 5.27B | 4.88B | 4.48B |
| Total Liabilities | 14.08B | 17.44B | 15.18B | 12.84B | 9.95B |
| Stockholders Equity | 5.68B | 6.83B | 6.26B | 5.87B | 4.89B |
Cash Flow | |||||
| Free Cash Flow | 2.22B | 2.23B | 1.83B | 1.31B | 943.00M |
| Operating Cash Flow | 2.64B | 3.13B | 2.17B | 1.60B | 1.17B |
| Investing Cash Flow | -1.92B | -1.26B | -1.23B | -874.00M | -727.00M |
| Financing Cash Flow | -798.86M | -1.53B | -2.09B | -693.00M | -152.00M |
Compass Technical Analysis
Negative
2046.00
Price Trends
29.16
Negative
30.07
Negative
31.90
Negative
Market Momentum
-0.44
Positive
40.43
Neutral
40.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPG, the sentiment is Negative. The current price of 2046 is above the 20-day moving average (MA) of 28.52, above the 50-day MA of 29.16, and above the 200-day MA of 31.90, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 40.43 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CPG.
Compass Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £361.72M | 5.12 | 4.99% | 2.81% | 6.94% | 9.99% | |
66 Neutral | £357.56M | 3.47 | 9.75% | ― | -0.08% | ― | |
66 Neutral | £1.59B | 8.30 | 6.46% | ― | 3.87% | 18.31% | |
64 Neutral | $46.88B | 0.38 | 25.84% | 2.34% | 6.44% | 29.42% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | £643.46M | 8.99 | 15.81% | 1.50% | 4.52% | 50.39% | |
48 Neutral | £1.48B | -18.43 | -59.21% | 2.50% | 5.98% | -371.14% |
* Consumer Cyclical Sector Average
GB:CPG
Compass
27.25
-5.93
-17.88%
GB:FSTA
Fuller Smith & Turner
674.00
145.66
27.57%
GB:MARS
Marston's
56.80
21.60
61.36%
GB:MAB
Mitchells & Butlers
275.50
34.00
14.08%
GB:SSPG
SSP Group plc
192.10
52.91
38.02%
GB:JDW
J D Wetherspoon
640.50
36.19
5.99%
Compass Corporate Events
Regulatory Filings and Compliance
Compass Group Confirms Share Capital and Voting Rights as of 31 March 2026
Neutral
Apr 1, 2026
Compass Group PLC has confirmed its issued share capital and voting rights position as of 31 March 2026, reporting a total of 1,785,403,977 ordinary shares in issue. Of these, 1,700,442,139 shares are admitted to trading, while 84,961,838 are held...
Business Operations and StrategyDelistings and Listing Changes
Compass Group Switches LSE Share Trading Currency to U.S. Dollars
Positive
Apr 1, 2026
Compass Group has shifted the trading currency of its ordinary shares on the London Stock Exchange from sterling pence to U.S. dollars, effective 1 April 2026, aligning the share price quotation with its existing reporting currency. The company ex...
Business Operations and Strategy
Compass Group to Shift LSE Share Trading Currency to U.S. Dollars
Positive
Mar 18, 2026
Compass Group PLC will change the trading currency of its ordinary shares on the London Stock Exchange from sterling to U.S. dollars effective April 1, 2026, aligning the share price trading currency with the company’s reporting currency. Th...
Other
Compass Group CFO Acquires Shares Through Dividend Reinvestment
Neutral
Mar 6, 2026
Compass Group PLC disclosed that Group Chief Financial Officer and Executive Director Petros Parras acquired ordinary shares in the company through the reinvestment of dividends. The transaction involved the purchase of 764 Compass Group shares at...
Regulatory Filings and Compliance
Compass Group Updates Share Capital and Voting Rights as of 28 February 2026
Neutral
Mar 2, 2026
Compass Group PLC has confirmed its total issued share capital as of 28 February 2026, reporting 1,785,403,977 ordinary shares of 11 1/20 pence each. Of these, 1,700,430,644 shares are admitted to trading while 84,973,333 are held in treasury, wit...
Regulatory Filings and Compliance
Compass Group Confirms Total Voting Rights and Share Capital as of 28 February 2026
Neutral
Mar 2, 2026
Compass Group PLC has reported its total voting rights and share capital position as of 28 February 2026, stating that it has 1,785,403,977 issued ordinary shares, of which 1,700,430,644 are admitted to trading and 84,973,333 are held in treasury....
Business Operations and StrategyDividends
Compass Group Sets Sterling Value of Final Dividend at 31.75p
Positive
Feb 10, 2026
Compass Group PLC has confirmed the sterling equivalent of its previously announced final dividend of 43.3 US cents per ordinary share, setting the payout at 31.75 pence per share for shareholders. The conversion reflects an exchange rate of US$1 ...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Compass Group Wins Strong Shareholder Backing at 2026 AGM
Positive
Feb 5, 2026
Compass Group PLC reported that shareholders approved all resolutions at its Annual General Meeting held on 5 February 2026, including the receipt of the directors’ report and accounts, the directors’ remuneration report, a final divid...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresM&A Transactions
Compass Group Posts Strong Q1, Closes Vermaat Deal and Shifts LSE Trading to US Dollars
Positive
Feb 5, 2026
Compass Group delivered a robust first quarter to 31 December 2025, posting 7.3% organic revenue growth driven by strong performances in both North America and international operations, with Sports Leisure and Business Industry remaining the fas...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresM&A Transactions
Compass Group Delivers Strong Q1, Closes Vermaat Deal and Shifts LSE Trading to Dollars
Positive
Feb 5, 2026
Compass Group PLC reported a strong start to its 2026 financial year, with first-quarter organic revenue up 7.3% driven by broad-based growth across regions and sectors, particularly in Sports Leisure and Business Industry, and supported by net ...
Regulatory Filings and Compliance
Compass Group Confirms Total Voting Rights and Share Capital as of 31 January 2026
Neutral
Feb 2, 2026
Compass Group PLC has reported its total voting rights and share capital as of 31 January 2026, confirming an issued share capital of 1,785,403,977 ordinary shares. Of these, 1,700,430,644 ordinary shares are admitted to trading, while 84,973,333 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.